Telecommunications and cable services provider Optimum Communications (NYSE:OPTU) will be reporting earnings this Thursday before the bell. Here’s what you need to know.
Optimum Communications met analysts’ revenue expectations last quarter, reporting revenues of $2.07 billion, down 4% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates. It reported 3.75 million broadband subscribers, down 5.4% year on year.
Is Optimum Communications a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Optimum Communications’s revenue to decline 5.2% year on year, a further deceleration from the 4.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Optimum Communications has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Optimum Communications’s peers in the consumer discretionary - wireless, cable and satellite segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Comcast delivered year-on-year revenue growth of 4.7%, beating analysts’ expectations by 1%, and AT&T reported revenues up 2.3%, falling short of estimates by 0.6%. Comcast traded down 5.2% following the results while AT&T was up 3.1%.
Read our full analysis of Comcast’s results here and AT&T’s results here.
Investors in the consumer discretionary - wireless, cable and satellite segment have had steady hands going into earnings, with share prices up 1.2% on average over the last month. Optimum Communications is down 28% during the same time and is heading into earnings with an average analyst price target of $1.19 (compared to the current share price of $0.89).
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